Loblaws’ ‘Middle Mile’ Autonomous Vehicles and the Future of Grocery in Canada: Sylvain Charlebois

Date:

Share post:

Loblaws is partnering with Gatik, an autonomous vehicle provider from the United States, to launch the first autonomous food delivery fleet. This is a solution for the “middle mile”, which will assure links between distribution centres and stores. Consumers will not see autonomous vehicles driving up to their homes yet, but that day will surely come soon.

These cold-chain, capable, boxed vehicles which are not very large, have already been roaming Toronto’s streets for some time for another grocer. They even experienced last year’s winter, so Gatik is aware of potential perilous road conditions when operating its fleet. Captured data by Gatik will give the company the experience needed to make the supply chain more efficient.

What is driving this decision is clearly e-commerce. The “middle mile” is where gains can be exponential even though the last mile may be the costliest. This is the obscure part of the supply chain consumers do not see but are severely affected by. Food prices are more manageable when costs are under control. With this partnership, Loblaws will be able to move food from automated picking facilities multiple times a day to support their PC Express online grocery service in the Greater Toronto Area. The fleet will likely be expanded as this partnership is being presented as a long-term work-in-progress, if you will.

Online sales by grocers have increased almost 90% since October of 2019. For Loblaws, online sales growth is almost at 200% compared to last year. In food retail, online sales represent close to 3.3% of all sales compared to 1.7% last year, according to Nielsen. This is just incredible growth. With such a market shift, some supply chain adjustments are required. Unlike Sobeys, which is creating a unique and independent infrastructure to develop Voilà by Sobeys, Loblaws is opting to make its supply chain more cyber-friendly. Both approaches can work. With these initiatives, grocers gain the ability to make more money online, something they have hesitated to do for years. For a few years, grocers were dithering with the concept. With COVID-19, grocers are fully committed now. Moving forward, they will want us to buy more food online, and will get better at providing this service.

Loblaws autonomous vehicles outside Loblaws office. Photo: Loblaws
Loblaws autonomous vehicles outside Loblaws office. Photo: Loblaws

Vehicles operated by Gatik will not be entirely autonomous, however. All vehicles will have a safety driver as a co-pilot for now. Since consumers are connecting with these vehicles, the approval process will probably be faster, but neither Gatik nor Loblaws could say when the autonomous fleet would be driving around without any humans at all. It is essentially just a matter of time.

Eliminating humans from the food supply chain is an option which has gained currency throughout the pandemic. For one, jurisdictions around the globe managing routes have struggled and have had to think about restaurants, rest areas and how to keep truckers and staff safe while keeping the region food secure. Humans, as vectors for transmitting the virus, or any disease for that matter, are seen as a liability when a public health crisis occurs. Supply chains are increasingly becoming more automated, so Loblaw’s move with Gatik is anything but surprising.

This human-less food supply chain is an ideal for now, but Loblaws’ call is significant enough to allow most of us to dream. Given the economics of food distribution in Canada though, this innovation is unavoidable, and Loblaws appears to be out of the gate first, embracing what lies ahead. Digitizing the supply chain can only help grocers better serve the Canadian market. With such a vast country, with few people living in it, making the middle mile more efficient is key. It does not necessarily mean that Loblaws’, or any other grocer’s intent is to eliminate all human involvement in the handling of food throughout its operations. It will however seek different skills and knowledge to support its online ambitions. The sector needs strong employees, and always will. But as the sector morphs into an omnichannel beat of sort, employees will be expected to play different roles, and most of the work will have to be about data management, not handling food per se.

The last mile is an autonomous fleet’s next frontier, the most exciting one for the industry, and likely for us as well. Canadians may not be there yet, but grocers like Loblaw are signaling to the Canadian public that the horse has left the virtual barn.

RELATED ARTICLES

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

SteMargScot Opens Toronto Flagship, Showcasing Canadian Fashion and Natural-Fibre Brands

Canadian outerwear brand SteMargScot has opened a flagship boutique at 1412 Dundas Street West in Toronto, featuring independent Canadian makers and Simply Merino's first Toronto micro-store. Founder Sasha Jardine discusses the multi-brand concept, domestic manufacturing and Canadian wool industry challenges.

Former McDonald’s Canada Executive Expands Franchise Business with New Yorkdale Restaurant

Former McDonald’s Canada executive Jonathan Greenway has opened a new restaurant at Yorkdale Shopping Centre after acquiring his first McDonald’s in Scarborough in June. He is planning a third Toronto restaurant in Riverside for spring 2027.

Apple’s Historic Montreal Flagship Property Sells for $51.9 Million Following Major Restoration

The historic Montreal building housing Apple's newly opened Sainte-Catherine store has sold for a reported $51.93 million to Deka Immobilien. The transaction follows extensive construction and heritage restoration by SAJO and concludes nearly 25 years of Gindi family ownership.

The Quebec Gap in Google Shopping That Canadian Retailers May Be Missing

Canadian retailers advertising nationally through Google Shopping may be overlooking French-language search opportunities in Quebec. With 82% of Quebec adults shopping online in 2025, expert Joshua Uebergang examines product-feed language, advertising visibility and practical steps retailers can take.

Daily Synopsis: November 10, 2026

Fresh Prep gets court approval to acquire Goodfood, Crmobie plans real estate expansion, Costco opens Windsor store this month, Langley Fresh St. Market named top medium-sized independent grocery store, and other news.

Danish Footwear Brand glerups Opens Its Only Global Store in Toronto

Danish footwear brand glerups has opened its only currently operating standalone store at 787 Queen Street West in Toronto. Longtime Canadian distributor Tin Shack is using the location to build consumer awareness, support wholesale partners and gather direct customer feedback.

Royal Bank Plaza Marks 50th Anniversary with Chef Craig Wong Food Court Takeover

Royal Bank Plaza is celebrating its 50th anniversary with Tray Chic, a two-week culinary collaboration featuring chef Craig Wong and five restaurants at The Eatery in downtown Toronto.

Retail Insider “Q3 2026 Books & Specialty Report”: Physical Reach Needs Repeat Spending

Collectibles, books and entertainment brands are widening physical distribution through stores and partnerships. Retail Insider’s Q3 report examines why opening attention must develop into repeat purchases and sustainable location economics.

Andriani Marks First Anniversary of $55M Canadian Manufacturing Facility in London, Ontario

Italian food innovator Andriani marks one year of Canadian manufacturing in London, Ontario, with a $55-million investment and plans for North American growth.

Canadian Retailers Face Cautious Holiday Shoppers and Inventory Risks Ahead of Black Friday 2026: Hennick

With Canadian holiday spending expected to fall 14%, retail expert Alex Hennick discusses Black Friday trends, consumer price sensitivity and inventory management challenges heading into 2027.

Pet Valu sees Q3 revenue reach close to $300 million

Pet Valu opened 7 new stores and ended the quarter with 882 stores across the network.

Visualping Study Finds One-Third of Canadian Black Friday Deals in 2025 Were Cheaper Earlier in the Season

Visualping’s 2025 analysis of 2,500+ products reveals misleading Black Friday discounts at Canadian retailers, with some items costing 37% more than their earlier seasonal lows.

Chef Nuit Regular and Jeff Regular Celebrate Grand Opening of UP Events in Toronto

Chef Nuit Regular and Jeff Regular have celebrated the opening of UP Events above PAI in downtown Toronto. The venue is fully operational, offering private functions for corporate and social gatherings, with inquiries underway for upcoming events.

UNIQLO More Than Doubles Canadian Store Network as North American Growth Surges

UNIQLO has more than doubled its Canadian store network since 2022, reaching 39 locations by September 2026. New shopping-centre openings, a longstanding Canadian leasing relationship and strong North American financial results point to continued expansion.

HANK. Opens Oakville Pop-In as Menswear Chain Tests New Retail Format

HANK. has opened a 1,500-square-foot seasonal store in downtown Oakville, converting Caulfeild Apparel Group's existing showroom into a street-front retail location. CEO Mike Purkis discusses the low-capital format, early lessons from the chain's first stores and its Canadian expansion ambitions.

Decathlon Expands in Canada with New Quebec Stores Following Ontario Closures

Decathlon is opening new stores in Quebec City and Saint-Bruno-de-Montarville after closing five Greater Toronto Area locations in 2025. The French sporting goods retailer is also considering smaller store formats and further expansion in Western Canada.

Canadian Retail Brands Diverge as Aritzia, Dollarama Gain and lululemon Falls in Kantar Ranking

Kantar's 2026 BrandZ ranking reveals sharply contrasting fortunes for Canadian retail brands. Aritzia and Dollarama gained significant brand value while lululemon declined, with Kantar North America CEO Jeff Greenspoon explaining the importance of differentiation, affordability and consumer loyalty.

Italian Menswear Brand Lubiam Targets Canadian Growth Through Harry Rosen Partnership

Italian menswear maker Lubiam plans to expand in Canada through Harry Rosen and independent retailers, targeting demand for premium tailoring and contemporary menswear.

CIBC says retailers and wholesalers may absorb higher costs, limiting Canadian inflation

CIBC economists say elevated retail and wholesale profit margins could help shield Canadian consumers from rising business costs and temper inflation in 2027.

The Children’s Place Bankruptcy Puts 56 Canadian Stores in Focus as Retailer Seeks Buyer

The Children's Place has filed for Chapter 11 bankruptcy protection, bringing its Canadian operations into a court-supervised sale process. The retailer reported 56 Canadian stores earlier this year, with the future of its network dependent on a buyer and the outcome of restructuring proceedings.